2. • What is a Project ? And Project vs
• Project Life cycle
• Project Management Process
• Project knowledge Areas
• Role of Project Manager and Team Building
• Methods of selecting Projects
TABLE OF CONTENTS
3. WHAT IS A PROJECT ?
• A Project is a temporary (Definite beginning and end
point) endeavour undertaken to create a unique product
• Aim of a project is to attain the objective and close the
4. PROJECTS VERSUS
Organizations perform work either by
Shared characteristics of projects and operations
Performed by people
Constrained by limited resources
Planned, executed and controlled
Operations and projects differ in below ways –
Projects are temporary and unique
Operations are ongoing and repetitive
Planning consists of those processes performed to
establish the total scope of effort and develop the course of
action required to attain project objectives.
The planning processes develop the Project Management
Plan and the project documents that will be used to carry
out the project
10. Executing Process
• Project Plan Execution – Carrying out the plan by
performing the activities included therein.
• Team Development – developing individual and group
skills/competencies to enhance project performance.
• Information Distribution – making needed information
available to project stakeholders in timely manner.
• Solicitation- obtaining quotations, bids, offers or
proposals as appropriate.
• Source Selection – choosing from potential sellers
• Contract Administration – managing the relationship with
11. Monitor and Control Project
Comparing actual project performance against the project
Assessing performance to determine whether any
corrective or preventive actions are indicated, and then
recommending those actions
Analyzing, tracking, and monitoring project risks
Monitoring implementation of approved changes when
and as they occur.
12. Close Project
The Close Project process involves performing the project
closure portion of the project management plan.
Administrative closure procedure: This procedure details all
the activities, interactions, and related roles and responsibilities of
the project team members and other stakeholders.
Contract closure procedure: Includes all activities and
interactions needed to settle and close any contract agreement
established for the project
14. PROJECT KNOWLEDGE AREAS
• Project Integration Management :Effective integration of the
processes required to accomplish project objectives
• Project Scope Management :Defines and controls what is and is
not included in the project
• Project Time Management :Includes processes required for the
timely completion of a project
• Project Cost Management:Planning, estimating, budgeting and
controlling costs to ensure the project can be completed within the
15. • Project Quality Management:All activities that determine quality policies,
objectives and responsibilities for the project to satisfy the needs for which
it was undertaken
• Project Communications Management:Processes that organize and
manage the project team
• Project Human Resource Management: Activities to ensure project
information is timely and appropriately generated, collected, distributed,
stored, retrieved and disposed.
• Project Risk Management:“… the processes concerned with identifying,
analyzing, and responding to project risk. 15
16. • Project Procurement Management:Processes to purchase/acquire the
products, services or results needed to perform the project work
• Project Stakeholders Management: Activities to identify stakeholders
for analyzing their expectations & impact on the project and developing
appropriate strategies to effectively engage stakeholders in project
decision and execution
17. ROLE OF PROJECT MANAGER
• Project issues
• Disseminating project
• Mitigating project risk
• Managing scope
• Managing the overall work
• Implementing standard
• Establishing leadership
• Setting expectations
• Team building
• Communicator skills
18. ROLES OF PM
oversees and manages the work and the employees
ensures that all resources and work are available when needed
and that any problems are resolved
must effectively communicate with senior management, client,
project team, and other participants (vendors, dept. managers,
etc.) as needed (which is frequently)
negotiate with senior mgmt. for more resources
negotiate with functional manager to get a particular project team
member or to use a functional resource
negotiate with vendor for shorter lead time and negotiate with
client about project goal changes
Weighted Scoring Model
A weighted scoring model is a tool that provides a
systematic process for selecting projects based on many
Steps in identifying a weighted scoring model:
1. Identify criteria and assign weights (percentages) to
each criterion important to the project selection
2. Assign scores to each criterion for each project.
3. Multiply the scores by the weights to get the total
The higher the weighted score, the better.
22. Financial Analysis of Projects
Methods for determining the projected
financial value of projects:
Return on Investment (ROI)
Net Present Value (NPV) Analysis
23. Payback Analysis
The payback period is the amount of time it will
take to recoup, in the form of net cash inflows,
the total money invested in a project.
Payback occurs when the cumulative
discounted benefits equals costs.
25. Return on Investment
Return on investment (ROI) is calculated by
subtracting the project costs from the benefits
and then dividing by the costs.
ROI = (Total Discounted Benefits - Total
Discounted Costs) / Discounted Costs
Higher the ROI, the better.
26. Net Present Value Analysis
Net present value (NPV) analysis is a method of
calculating the expected net monetary gain or loss
from a project by discounting all expected future
cash inflows and outflows to the present point in
Projects with a positive NPV should be considered
if financial value is a key criterion.
Higher the NPV, the better.
Positive NPV: the project meets the
minimum desired rate of return and is
eligible for further consideration.
Negative NPV: project is rejected.